AHG boss warns sales sites

The head of the country’s largest automotive retailer has warned online car advertising sites that he won’t be dictated to.
Automotive Holdings Group
chief executive Bronte Howson said car dealers needed to consider other options if the pricing models of the online businesses started to hinder the profitability of the sector.

“We shouldn’t be put in a vulnerable position in the future by dotcom companies that are really not motor dealer industry people," Mr Howson said.

“We really need to keep our options open."

The comments follow the release of a broker report saying some dealers were not happy about paying $35 every time a potential buyer inquired about a car on a
Carsales.com
site.

The listed Carsales enjoys a 60 per cent market share in the online car advertising market, according to research company Frost & Sullivan, which is a market dominance that concerns car dealers.